Export Guarantee Funds (Hansard, 5 May 1993)

§ Mr. Cousins
To ask the President of the Board of Trade how much of the £1 billion fund created in 1988 under section 2 of the Export Guarantees and Overseas Investment Act 1978 has been used.

§ Mr. Needham
ECGD has issued guarantees worth £834.2 million against the ceiling of £1 billion under the arrangements which Ministers announced in June 1988 for underwriting large contracts for defence goods.

§ Mr. Cousins
To ask the President of the Board of Trade what are the outstanding liabilities, and the annual cost, of expenditure incurred under section 2 of the Export Guarantees and Overseas Investment Act 1978 in each year since 1979.

§ Mr. Needham
Information on section 2 is only available up to March 1987 after which ECGD introduced 107W a new form of account under which information was no longer accounted for separately between section 1 and section 2.

Amounts at risk¹ Amounts in default² Consolidated fund balance³ Trading reserves and surpluses⁴

£ million £ million £ million £ million

31 March 1980 8,177 77 342.0 309.3

31 March 1981 8,465 94 371.3 364.5

31 March 1982 12,266 180 380.6 454.6

31 March 1983 17,737 403 166.0 680.3

31 March 1984 18,673 623 -15.5 566.3

31 March 1985 19,354 876 -156.7 405.3

31 March 1986 16,930 1,200 -252.8 551.0

31 March 1987 14,821 1,549 -510.0 297.2

¹ These amounts represent ECGD's gross contingent liability under extant guarantees excluding unrecovered claims payments.

² These comprise gross paid claims, plus interest, which have not been recovered or written off.

³ These amounts represent ECGD's cumulative cash balance under Section 2. Notional interest in line with commercial rates was earned on positive balances and charged on negative balances.

⁴ These amounts represent the cumulative value of ECGD's assets (positive cash balances, paid claims net of provisions) over its liabilities (negative cash balances, provisions for future claims).

	Amounts at risk¹	Amounts in default²	Consolidated fund balance³	Trading reserves and surpluses⁴
	£ million	£ million	£ million	£ million
31 March 1980	8,177	77	342.0	309.3
31 March 1981	8,465	94	371.3	364.5
31 March 1982	12,266	180	380.6	454.6
31 March 1983	17,737	403	166.0	680.3
31 March 1984	18,673	623	-15.5	566.3
31 March 1985	19,354	876	-156.7	405.3
31 March 1986	16,930	1,200	-252.8	551.0
31 March 1987	14,821	1,549	-510.0	297.2
¹ These amounts represent ECGD's gross contingent liability under extant guarantees excluding unrecovered claims payments.
² These comprise gross paid claims, plus interest, which have not been recovered or written off.
³ These amounts represent ECGD's cumulative cash balance under Section 2. Notional interest in line with commercial rates was earned on positive balances and charged on negative balances.
⁴ These amounts represent the cumulative value of ECGD's assets (positive cash balances, paid claims net of provisions) over its liabilities (negative cash balances, provisions for future claims).